Edmonton, Alberta — AutoCanada has unveiled its fourth-quarter results for 2020, reporting an 8.3 percent increase in revenue compared to the same period the year prior and “outperform[ing] the Canadian new-vehicle retail market,” said the company.
Fourth-quarter revenue for 2020 reached $876.1 million as compared to $809.1 million the prior year.
Moreover, the fourth-quarter Adjusted EBITDA of $40.5 million compares to $21.1 million reported in Q4 2019 and represents an improvement of 92.1 percent.
Gross profit increased by $13.1 million (up 9.4 percent from 2019 Q4) ascribed to used vehicles. The gross profit margin on used vehicles increased to 7.7 percent from 5.8 percent in Q$ 2019, said the company.
While used vehicles drove gross profit growth, the company’s leaner operating model and effective cost management measures permitted improved profit retention as operating expenses as a percent of gross profit decreased to 78.1 percent as compared to 89.6 percent in the prior year, it said via online press release.
Also notable are AutoCanada’s acquisitions of Auto Bugatti, Autohau of Peoria and Haldimand Motors accounted for a net cash outflow of $10.7 million.
“We achieved another record-setting quarter as the actions taken to strengthen the business model and position the Company for top-decile operating performance allowed us to improve year-over-year performance on almost every measure. Continued strong used vehicle sales, improvements in new vehicle sales and our disciplined focus on cost management and operational excellence were key drivers of our performance,” said Paul Antony, executive chairman of AutoCanada.
Click here for more information on AutoCanada’s Q4 2020 results.
